Underlying return on equity was up 2.8 percentage points to 18.6%, mainly due to the higher underlying net result.

Tex Gunning, CEO of LeasePlan: “LeasePlan has delivered yet another strong set of results in Q1 2017, highlighting again the strong and resilient nature of our business. In addition, in Q1, we were delighted to launch a pan-European partnership with Uber, underlining our increasing presence and expertise in the fast-growing ‘mobility as a service’ segment. From an operational perspective, we also successfully rolled out the “Power of One LeasePlan” initiative within the company in Q1. Going forward, this will enable us to leverage the strength of our organisation across all LeasePlan countries, the value chain and our functional competencies - enabling us to quickly unlock significant additional value for our customers and investors."

Operational ProgressLeasePlan’s fleet grew from 1.6 million vehicles at the end of first quarter of 2016 to 1.7 million vehicles at the end of the first quarter of 2017. Growth continued in all segments and in all major markets with relatively strong contributions from Germany, the Netherlands and Italy. In addition, a further roll out of fleet insurance products and services across our group resulted in a growth of the insured fleet by 54,000 vehicles during the past 12 months. In several European countries, the improvement of the insurance market led to a reversal of the downward pressure on premiums.

We also saw a continued increase in demand from international customers for consultancy, covering areas including cost optimisation and fleet policy. Sustainability was also a growth area, with a strong interest among our corporate customers for low-emission value propositions. We will support this increasing demand via our new Electric Vehicle Centre of Expertise, which we launched in Q1.

Finally, in Q1, we also took steps to capitalize on additional growth opportunities in the ‘mobility as a service’ segment, including the launching of a pan-European partnership with Uber. The partnership, which builds on existing local initiatives, will enable us to bring the benefits of a full operational lease to Uber’s growing fleet of partner-drivers.

LeasePlan will relocate its head office from Almere to Amsterdam. As of 6 June 2017, LeasePlan Corporation will be located in the UN Studio building, (Gustav Mahlerlaan) in the Zuidas business district. LeasePlan Bank will also move into the same building. LeasePlan Netherlands’ office remains in Almere.

Financial reviewLeasePlan recorded strong financial results in Q1 2017, with our performance reflecting the strength and resilience of our business and diversified income streams.

In Q1 2017, total underlying revenues increased by 6% to EUR 2.4 billion compared to Q1 2016. Lease revenues increased by EUR 115 million, largely driven by the increase in the number of vehicles under management (6%). The increase in vehicle sales revenues of 1% is mainly driven by the increase in the number of vehicles sold.

Gross profitUnderlying gross profit grew by 5% to EUR 399 million compared to the first quarter of last year with higher profit contributions from fees and interest margin, lease services and insurance, partially off-set by a slightly lower contribution from vehicles sales.

OverheadsUnderlying overheads decreased by 4% to EUR 208 million compared to Q1 2016, mainly due to lower staff expenses, resulting from the restructuring of the Group to a fully integrated organisation which took place in the last quarter of 2016. The number of employees is almost 7% lower than a year ago. Underlying overhead per vehicle** decreased by 10%, reflecting increased group operating efficiencies and cost savings.

Our reported net result, which includes one-time items and normalisations, amounted to EUR 140 million. One-time items of EUR 10 million after tax (EUR 13 million before tax) representing a restructuring charge relating to the Power of One LeasePlan, are partly offset by an unrealised gain of EUR 4 million net (EUR 6 million before tax) on derivative financial instruments. In the comparable first quarter 2016, no one-time items are included, so underlying adjustments represents normalisations relating to an unrealised loss of EUR 3 million net (EUR 5 million before tax) on derivative financial instruments (see also Note 1 on page 21 of the consolidated interim financial statements).

Funding and capital positionLeasePlan’s diversified funding platform remained stable and continued to deliver the required funding in Q1 2017 with various private placements, an increase in LeasePlan Bank retail deposits by EUR 447 million to EUR 5.8 billion and a successful issuance of GBP 425 million of securitised notes (Bumper 8). LeasePlan’s capital position also remains solid, with a CET 1 capital ratio of 18.6%, compared to 18.3% at the end of Q1 2016.

OutlookLeasePlan foresees substantial potential for further improving the Group’s operational excellence and for sustainable growth in corporate, small and medium enterprises and private lease markets, as well as in the ‘mobility as a service’ market segment.